GREY:WFREF - Post by User
Comment by
TheRock07on Oct 04, 2015 8:07pm
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Post# 24161982
RE:RE:RE:RE:Oct 2/15 Mie update..financing going well
RE:RE:RE:RE:Oct 2/15 Mie update..financing going wellI dont use inane tripe as a basis for my assertions as to the price of oil in 2016.
The evidential basis is that nearly all gains in world oil production over the past 10 years have emanated from increased production in North America.
Specifically , expensive US tight oil , and Canadian tar sands oil.
We have yet to see the full impact of capex reductions on these two sources of new oil.
Once those drilled wells begin to hit their production declines, just watch how fast a reduction of 1 million barrels will happen.
Already ,US production is down by 500,000 bpd. By March of 2016, expect US production to decline by another 500,000 barrels.
Oil sands production is already starting to level off and most conventional producers are starting to show significant reductions in production due to capex reductions,
Considered together, about 1.5 million bpd of NA oil production will be offstream by late 2016.
Many new projects... Mostly expensive oil... Have been shut down and in other areas ( N Sea ) similar capex reductions are now starting to bite.
No one makes money at $40 oil and the Russian economy is imploding.
What a great time to light a match in the middle East..